Consolidation Continues – German Banks

Number of Banks with Steepest Decline since 2003

There has been a hefty debate about the state and future development of German banking consolidation recently. In order to provide a solid starting point for future discussions we share initial results for 2017 below:

Number of bank branches declined by minus 4.5% yoy in 2017. This is slower than -5,7% in 2016, but still above the long term average of minus 3.3% since 1996

One regional savings banking association has reduced branches even by minus 11.9% yoy

Number of banking institutes declined by minus 4.7% yoy in 2017. Pace of bank consolidation has therefore increased vs 2016, which posted a decline of minus 3.9%. It is also the strongest decline since 2003, which is sometimes referred to as „annus horribilis“ for German banks. The average historical decline since 1996 accounts for minus 3,2%